HOPES that Gordon Brown’s 10th budget report would ease some of the administrative burden on business have been dashed according to local business leaders.

Despite the chancellor’s pledge to do more to back the UK’s enterprise culture, the failure to reduce the levels of business taxation including corporation tax, means for many it is a missed opportunity to boost productivity and global competitiveness.

The Institute of Chartered Accountants South East regional manger, Fay Deakin has accused the Chancellor of “putting sticking plaster over areas where more fundamental reform is long overdue” and failing to end uncertainty for businesses over their medium and long term tax obligations.

And despite acknowledging the economic stability, Surrey Chamber of Commerce does not feel that the budget has gone far enough to reduce the overall regulatory burden which now stands at £50 billion since 1998, citing that employers are are fed up with the cost and time-consuming nature of government regulation.

Chairman of the West Surrey branch of the Institute of Directors, Miles Templeman believes that a cut in the main rate of corporation tax would have been more beneficial. “The competitive advantages the UK once enjoyed with a 30% rate of corporation tax have been eroded away. We need to reduce the rate of corporation tax in order to boost our competitiveness,”he said.

“The IoD is disappointed by the absence of major announcements on reducing administrative burdens on business. This had been billed as a likely centrepiece of the 2006 budget, but progress on measuring the burdens and then setting targets for their reduction appears to have been delayed. Business urgently needs practical action to tackle over-regulation.”

But there was a more favourable response to several measures which are seen as potentially innovative boosts to business, particularly helping women in the workplace and addressing the skills shortage, a problem particularly pertinent to the south east.

The Chancellor announced he was promoting a culture of stability to invest for the long term leading on enterprise and prosperity and locking in stability. The region’s research and development companies are most in line to benefit with an increase in the number of companies eligible for a higher rate of research and development tax credit. The IoD welcomed the Chancellor’s decision to extend free further education for young people up to the age of 25 and a pledge to increase expenditure on schools.

And the creation of summer schools for budding entrepreneurs were also applauded by the managing director of Business Link Surrey, Rosemary French.

“Surrey’s 56,000 businesses should note that additional funding will be made available for women either returning to the workplace or improving their skills levels which should go some way to relieving the skills shortage that exists in the South East and is holding back business productivity,” she said. “In addition the introduction of capital grants to help employers establish workplace nurseries and increase to £55 for childcare vouchers should encourage more women and lone parents to start their own business. Summer schools for entrepreneurs should also encourage more women and lone parents to start their own businesses.”

But other aspects of business have been dealt a heavy blow.

Tax relief on home computer initiative schemes is to be scrapped from next month as are tax breaks for company computers with serious implications for employees who had opted for computers as flexible benefit which would be paid off tax-free after three years.

“Gordon Brown’s u-turn on taxbreaks for company computers is nothing short of scandalous,” said Nikki Ferguson, managing director of Haslemere-based Quin-essence which provides employee benefit packages.

“It’s a kick in the teeth for employers and to save how much for the exchequer? “It’s a totally backward step on getting the country completely computerised, more efficient and more profitable.”